Hershey (HSY) closed the most recent trading day at $193.74, moving -1.13% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.24%.

Coming into today, shares of the chocolate bar and candy maker had gained 1.78% in the past month. In that same time, the Consumer Staples sector lost 3.94%, while the S&P 500 gained 0.48%.

The investment community will be paying close attention to the earnings performance of Hershey in its upcoming release. It is anticipated that the company will report an EPS of $2.72, marking an 8.11% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.12 billion, reflecting a 4.3% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.60 per share and a revenue of $11.47 billion, representing changes of +0.1% and +2.71%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Hershey. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Hershey currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Hershey is presently being traded at a Forward P/E ratio of 20.42. This represents a premium compared to its industry's average Forward P/E of 19.35.

Also, we should mention that HSY has a PEG ratio of 3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Confectionery was holding an average PEG ratio of 2.63 at yesterday's closing price.

The Food - Confectionery industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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